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The wind-turbine industry should be booming. Why isn’t it?
Stiff competition has combined with rising costs
and other burdens
By Staff Writers
May
18, 2023
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Given the political weather, Western makers of
wind turbines should be flying high. America’s Inflation Reduction Act
is stuffed with goodies for all sorts of renewable energy. In late
April European leaders pledged to increase the North Sea’s
offshore-wind capacity to 300 gigawatts by 2050, from about 100
gigawatts today and double a previous commitment. That looks like an
awful lot of future business for turbine manufacturers. If only
shorter-term forecasts were as clement.
The four biggest Western makers of wind turbines—ge Renewable Energy,
Nordex, Siemens Gamesa and Vestas—supply about 90% of the market
outside China. Together they made revenues of €42bn ($46bn) in 2022.
But whereas wind-farm operators benefited handsomely from high
electricity rates after Russia invaded Ukraine in February last year,
the turbine-makers sank into the red and their suppliers barely made
money.
The global wind turbine market size was estimated
at US$ 55.91 billion in 2021 and it is expected to worth around US$
102.4 billion by 2030, growing at a CAGR of 6.34% in the forecast
period 2022 to 2030.
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In order to convert the wind energy into electric
energy, wind turbines are used in the wind power plants. The electric
energy is derived due to the aerodynamic force of the rotor blades.
The conversion of the aerodynamic force to the rotation of a generator
produces electricity. As various governments are adopting initiatives
to combat the climate change renewable energy is experiencing great
growth. With the COVID-19 outbreak in 2020, the growth of the wind
turbine market was impacted in terms of delays in manufacturing and
delays in the supply of raw material or the supply of new turbines. So
all of these were the challenges faced by the wind turbine market.
COVID-19 had impacted almost all the industries across the globe. The
industrial operations were affected due to delays in the supply
chains. The operations of many companies were halted due to the
absence of workforce. Apart from that many vendors have migrated to
their hometowns due to the uncertainties in the income during the
lockdown so the production and manufacturing activities had come to an
halt. Even during the forecasted the growth could be hampered due to
the shortage of workforce. The import and export activities were also
impacted which directly affected the wind turbines market.
Growth Factors
As the governments are taking initiatives to produce renewable energy
there is a growth in the market. An increasing demand for renewable
energy sources, especially the wind power and efforts to reduce the
dependence on fossil fuel based power generation are expected to be
the major factors for the rise of this market. Many tax benefits and
incentives are provided by the governments which are helping in
reducing the prices of the components so it is expected to give a
boost to the wind turbine market. Across many developing nations,
there is a mismatch in the supply and demand so there is a surge in
the wind turbine market.
In the offshore installation of the wind turbines, the companies are
being able to install taller turbines and also larger blades in order
to sweep more area than the smaller turbines. As the size of the wind
turbines has grown, it has also helped in lowering the cost of wind
energy. The adoption of offshore wind markets for the wind energy with
the help of advanced technologies has attracted many nations and
companies for high investments. The wind energy is variable. If the
wind doesn't flow, no electricity is generated. The wind energy
industry is still blooming due to the efforts taken by the various
nations across the world to combat climate change, such as the Paris
Agreement.
Report Scope of the Wind Turbine Market
Report Coverage |
Details |
Market Size by 2030 |
USD 102.4 Billion |
Growth Rate from 2022 to 2030 |
CAGR of 6.34% |
Largest Market |
Asia Pacific |
Fastest Growing Market |
North America |
Base Year |
2021 |
Forecast Period |
2022 to 2030 |
Segments Covered |
Axis, Installation, Components, Application, Capacity,
Connectivity, Rating, Region |
Companies Mentioned |
General Electric company., Vestas Wind Systems A/S, Nordex
SE., Suzlon Energy Limited., Siemens Gamesa renewable energy.
SA, CSIC., Shanghai Electric., Windey |
Axis Insights
Depending upon the axis of the wind turbine, the vertical
segment is expected to dominate the global market and it is expected
to remain the fastest growing segment in the forecast period as the
main features of this type is it provides high efficiency at lower
price.
Installation Insights
On the basis of the installation, the global wind turbine
market can be classified into either onshore market or the offshore
market. Onshore market has been on the high till 2021 and it is
projected to remain the fastest growing segment even during the
forecast period. The onshore wind market is expected to grow rapidly
during the forecast period owing to the factors like higher demand for
the onshore installation as compared to the offshore installation.
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The offshore wind turbine installation is expected to grow during
the forecast as the major companies in the countries are turning
towards the adoption of renewable energy sources and clean energy
sources. The offshore wind turbine provides many other benefits like
improved power generation due to consistent wind flow and quick
installation of the turbines.
Components Insights
The wind turbine market has many components and based on the
components it can be classified into rotator blade, Generator,
gearbox, nacelle and others. The rotator blade segment has dominated
the market till 2021 and it shall rise during the forecast the
reason being rapid industrialization and increased power industries.
Application Insights
The various applications of the wind turbines are industrial
applications, commercial applications, utility and residential
applications. The utility segment has dominated the market till date
and it is expected to grow during the forecast as the Governments
are making stringent policies in order to have sustainable renewable
projects. Due to rapid urbanization and rapid expansion of local
production the demand in the residential application is expected to
rise.
Regional Insights
The Asia Pacific region is expected to be the largest and the
fast paced market as they have the largest wind power generation and
the presence of manufacturing and technological hubs in various
countries like India, Japan and China. The installation capacity in
China has dominated the Asia Pacific market. The fourth largest wind
power installed capacity is held by India. The major projects are
situated in the northern, western and the southern parts of the
country. The Indian government aims to achieve 60 gigawatts, by the
end of 2022. Major companies are investing in the Asia Pacific
market.
North America is the biggest segment for this market in terms
of region. It is due to the rapid infrastructure expansion and due
to the implementation of various offshore wind projects the global
wind turbine market has Asia Pacific region as the fastest growing
area and it is expected to grow during the forecast. The main
reasons for the growth in this region are the increasing population
which provides a large consumer base and an ever increasing demand
for the renewable sources of energy.
Key Market Players
-
General Electric company.
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Vestas Wind Systems A/S
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Nordex SE.
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Suzlon Energy Limited.
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Siemens Gamesa renewable energy. SA
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CSIC.
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Shanghai Electric.
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Windey
Recent Developments
GE Renewable Energy announced that they will be supplying 42
units of 2.7-132 onshore wind turbines for the wind projects, which
will be a total of 110 megawatts in India , which will help in
meeting the electricity demand of various industrial companies in
the states of Gujarat as well as Karnataka during the forecast
period.
In 2021, GE Renewable Energy and Toshiba Energy solutions
along with Solutions Corporation announced a partnership to localize
the critical phases of the manufacturing of GE Haliade X which is an
offshore wind turbine and support the commercialization of this
turbine in Japan.
JSW energy Ltd which is a part of JSW group has ordered 810
MW of onshore wind turbines from GE Renewable energy for its
upcoming projects in Tamil Nadu.
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
exactrix@exactrix.com
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